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PLEASE SHOW ALL CALCULATION XYZ Ltd has two operating departments: geophysics and sampling...

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Accounting

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PLEASE SHOW ALL CALCULATION

XYZ Ltd has two operating departments: geophysics and sampling with two support departments materials handling and information technology (IT). An analysis of the worlk done by the support departments is provided below: Supplied By Materials Handlin IT Geophysics 350 475 Sampling 450 260 10 Materials Handling (direct labour hours) IT (direct labour hours) 600 The budgeted costs of the support departments for the coming year are Materials Handling $110,000 . IT- $75,000 The budgeted costs of the operating departments for the coming year are $3,250,450 for Geophysics and $1,275,000 for Sampling Required Allocate the costs of the support departments to the operating departments using a) Direct method b) Step-down method

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